would you refinance if...

you were going from 5% to 4.375%? Just called the current back we are mortgaged through, we would save approx $140 a month and he said he could roll in the closing costs... TIA!

Message edited 12/13/2011 3:29:22 PM.

Re: would you refinance if...

Is this your long-term home?

Re: would you refinance if...

yes this is our forever home

Re: would you refinance if...

Before proceeding, find out what the closing costs are to see if it's worthwhile.

We recently re-financed and we were going to do the rolling in of the closing costs, but they were still a hefty price and wouldn't lower the mortgage amount that much, but decided not to do it that way.

Check around, tho. We got a 3.125% rate for a 15-year mortgage (instead of a 20-year or 30-year mortgage).

Re: would you refinance if...

First, I would shop around for a better rate...

Second, see how long it takes you to recoop the cost for refinancing. If it's less than a few yrs, then go for it esp. since it's your forever home.

I just refinanced recently and lowered my rate from 4.375 to 3.75 and saved over $200. It was definitely worth it for us 'cus we'll recoop in 10 months!

Re: would you refinance if...

I am currently refinancing and my numbers/rates are very similar to yours. I will not move for at least 10 years because I bought high and renovated my entire house so I would lose a ton if I sell. I decided to do it even though the savings were not that significant so I can pay the mortgage off faster. I make an extra principal payment every month and I promised myself to make the same payment after the re-fi so I will end up paying a few hundred extra toward principal every month.

Re: would you refinance if...

the guy said the closing costs would be 3,500, i am not sure if thats just because im using the same bank... i priced out 15 year but the payment was a bit too much for us, almost $600 more a month than what we pay now. If i go to another bank though I am assuming my closing costs will be closer to 15k?

Re: would you refinance if...

I'm refinancing from 5.5 to 4.125. Just got the rate lowered as a one time adjustment from 4.25%. My closing costs will be approx $4500. I will recoup in less than a year. Our objective is to lower expenses. We will probably stay in this house another 5 years tops. We are looking to create liquidity to pay off other debts and to help our ageing parents pay their expenses.

It really depends on the goal. For your situation I would look at your overall savings over the life of the mortgage since this is your forever home. The monthly number is not that important as the overall picture.

Re: would you refinance if...

I think you might get a cheaper rate (but we don't know your financial history).

But yes, I would refinance. It's your forever house, you will recoup the cost in just a few years. Maybe less.

We are going to refinance also. We currently have a 5.5% rate.

On average they say it's worth it if you have at least 1 point different between the rate you have and the rate you will refinancing it at.